Coalbed methane gas; release of funds held in escrow or suspense. Requires an operator of a previously pooled coalbed methane gas well to request, by the beginning of 2016, the release of any funds held in escrow or suspense to the person who possesses a claim through a gas title. A coal claimant may halt such a release of funds by providing evidence that the coal and gas claimants have reached an agreement or that a proceeding against the gas claimant is pending. For a well that is pooled after July 1, 2015, the bill requires the operator to pay royalties directly to the gas claimant unless the coal claimant provides evidence of an agreement or a proceeding within a certain time. The Virginia Oil and Gas Board, under certain conditions, is authorized to extend the time for the payment of funds held in escrow and is not required to order payment if the gas claimant fails to provide information needed by the Board in order to distribute the funds. The bill also provides that it shall not create a fiduciary duty or extinguish any cause of action, including an action for an accounting.

As documented by testimony from the First Bank & Trust Company (the current Virginia Gas and Oil Board approved Escrow Agent) at the April 17, 2015, Virginia Gas and Oil Board Hearing -- all recipients of disbursement checks must have an IRS W-9 Form on file at the bank prior to the disbursement payment.

Generally, the operating companies will provide W-9 Forms to all disbursement payees. Disbursement payees should sign the W-9 Form and return it to the operating company preparing the disbursement petition.

If addition copies are needed, the W-9 Tax Form may be downloaded directly from the IRS website at the link below:

1. visit the IRS web site linked below,

2. download and fill out the "current" W-9 Form,

3. send the completed W-9 Form to the operating company preparing the disbursement petition,

4. once received, the operating company will forward the completed W-9 Form to the bank.